Sunrise New Energy Co., Ltd. announced a 5,000‑ton supply agreement with Shanghai Pylon Technologies Co., Ltd., a leading provider of home‑energy‑storage systems in Europe. The contract, valued at $15.1 million, will deliver high‑performance graphite anode material on an annual basis and represents Sunrise’s first formal entry into the European residential battery market.
The deal is structured as an annual supply agreement, with the possibility of renewal beyond the initial year. Pylontech’s demand for high‑quality anodes is driven by the rapid expansion of home‑storage installations across Europe, where governments are pushing for greater renewable integration and grid resilience. By securing a long‑term contract with a dominant European player, Sunrise gains a foothold in a market that is expected to grow at a compound annual rate of 12% over the next five years.
Strategically, the contract expands Sunrise’s geographic footprint and diversifies its customer base beyond China. It also demonstrates the company’s ability to scale production at its Guizhou subsidiary, which benefits from low‑cost renewable electricity. The 5,000‑ton commitment signals confidence from a key partner and provides a predictable revenue stream that can support future capacity expansion.
Financially, Sunrise has been operating with negative EBITDA of $11.5 million and a gross margin of –8.92% as of early December 2025. While the new contract adds steady revenue, it does not immediately lift profitability, as the company continues to invest heavily in production capacity and R&D. The deal, however, is a step toward revenue growth and may help offset cash burn if the company can maintain cost discipline.
On the announcement day, trading activity for Sunrise’s shares increased markedly, reflecting investor interest in the European expansion. The market reaction was driven by the significance of the contract and the company’s broader strategy to capture high‑value battery‑material markets.
CEO Haiping Hu emphasized that the partnership aligns with Sunrise’s goal of scaling its core graphite anode business into higher‑value applications. He noted that the company’s low‑cost production model, powered by renewable electricity, positions it well to meet the growing demand for advanced battery components in both electric‑vehicle and energy‑storage markets.
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